J&A_Redacted.pdf

Source Selection Information – See FAR Part 2.101 and 3.104.

DDEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

June 14, 2018

MEMORANDUM FOR RECORD

SUBJECT: Justification for Other than Full and Open Competition for acquisition of spare parts for various Wheeled Vehicles under authority of 10 U.S.C. 2304(c)(1) for Solicitation

SPE7LX-18-R-0121

Summary/introduction:

The purchasing activity for this acquisition is the Defense Logistics Agency (DLA) Land and Maritime.

This requirement is for the acquisition of an Absorbed Glass Mat Lead-Acid Storage Battery that will be used on a variety of land based vehicles to include multiple Mine Resistant Ambush Protected (MRAP) vehicles, Heavy Expanded Mobility Tactical Truck (HEMTT), the M-1 Abrams Tank, Bradley Fighting Vehicle, Family of Medium Tactical Vehicle (FMTV), and the Heavy Equipment Truck Tractor. The battery information is listed below and includes the Reference Number Category Code (RNCC), a code that designates the relationship of the part number to an item of supply, as well as the Reference Number Variation Code (RNVC) which indicates that a cited part number is or is not item identifying, or is for information only. The Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC) are also listed below. The AMC describes to the contracting officer and other Government personnel the results of a technical review of a part and its suitability for breakout, and the AMSC provides the contracting officer and other Government personnel with engineering, manufacturing, and technical information.

NSN PART # RNCC RNVC AMC AMSC CAGE NAME

6140-01- 485-1472

6T AGM 5 2

1 C

20038 Exide Technologies

9750N7025 5 2 0WY95 EnerSys Energy Products, Inc.

F 120 6T

AGM 5 2 AK973

FIAMM Energy Technology, S.p.A.

For Official Use Only

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RNCC

Code:

5 - Secondary Reference. Assigned to an item of production or supply by a commercial or government organization, which represents the same item of production or supply to which the national stock number was assigned.

RNVC

Code:

2 - A design control reference or other reference number that is an item-identifying number for an item of production, or is either a source control reference, a specification or a standard part, type, or similar reference number that is an item-identifying number for an item of supply.

AMC Code: 1 - Suitable for competitive acquisition for the second or subsequent time.

AMSC

Code:

C - This part requires engineering source approval by the design control activity in order to maintain the quality of the part. Existing unique design capability, engineering skills, and manufacturing knowledge by the qualified source(s) require acquisition of the part from the approved source(s). The approved source(s) retain data rights, manufacturing knowledge, or technical data that are not economically available to the Government, and the data or knowledge is essential to maintaining the quality of the part. An alternate source must qualify in accordance with the design control activity's procedures, as approved by the cognizant Government engineering activity.

Estimated value and contract duration: The proposed action is for the solicitation and award of a five-year, Firm Fixed Price, Indefinite Delivery Indefinite Quantity contract. The five-year period is inclusive of one two-year base period and three separately priced one-year option periods. The contract values are listed below.

NSN

Estimated Annual

Demand Value

(ADV)

Contract Maximum

(ADV*7.5)

Contract Minimum (ADV

X 10%) 6140-01-485-1472

Description of agency’s need (10 U.S.C. 2304(f)(3)(A))

The proposed solicitation will provide spare parts for the vehicles identified in the opening paragraphs. The annual demand is listed below.

NSN Item Annual Projected Demand 6140-01-485-1472 Battery, Storage 276,000

The item being procured is a critical component of the MRAP, HEMTT, M1 Abrams Tank, Bradley Fighting Vehicle, FMTV and Heavy Equipment Truck Tractor. Without it the weapon systems would become Non-Mission Capable (NMC). The item has a Weapon System Indicator Code (WSIC) code of F, indicating that failure of the part will render the end item inoperable. The item being procured is manufactured by only three approved sources: FIAMM Energy Technology, S.p.A. (CAGE AK973), Exide Technologies (CAGE 20038) and EnerSys Energy Products Inc. (CAGE 0WY95). The Original Equipment Manufacturers of the supported weapon systems listed above, Oshkosh Defense, LLC

SPE7LX18R0121

(CAGE 75Q65) and General Dynamics Land Systems (CAGE 1EFH8), are alternative available approved sources; however, they do not manufacture the storage battery and did not express interest in the acquisition for the current long term contracts in place for this NSN. They were therefore not contacted during market research for this successor acquisition.

This will be solicited as a split award with more than one contractor receiving a contract for the solicited item. The split award percentage decision will be made after negotiations and will be based upon factors such as manufacturer capacity, price, and any other relevant information that comes to light during negotiations.

Authority for other than full and open competition (10 U.S.C. 2304(f)(3)(B)):

The statutory authority permitting other than full and open competition is 10 U.S.C 2304(c)(1), the property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.

The Government requires spare parts that are form, fit, and functionally interchangeable with the parts currently being used on the supported weapon systems. The only manufacturing sources approved by the military customer’s design control activity with the comprehensive knowledge and expertise necessary to manufacture this item are CAGE AK973 / FIAMM Energy Technology, S.p.A.; CAGE 20038 / Exide Technologies; and CAGE 0WY95 / EnerSys Energy Products Inc. The Government does not currently possess detailed technical data sufficient to provide a description of all required form, fit, and function characteristics of these parts. The NSN’s product specialist reviewed the AMC/AMSC codes and list of approved sources on 04/10/2018 and verified they were complete and accurate.

Price/cost considerations (10 U.S.C. 2304(f)(3)(C)) Relevant pricing issues: At the time of this document, there are exceptions to the requirement to obtain certified cost or pricing data as outlined in FAR 15.403-1(b)(1), when the contracting officer determines that prices agreed upon are based on adequate price competition, and 15.403-1(b)(3), when a commercial item is being acquired. As such, the solicitation will not require the submission of certified cost or pricing data for evaluation by the Contracting Officer. Additionally, a price analysis will be performed by comparing proposed prices to historical prices in accordance with FAR 15.404-1(b)(2)(ii).

Basis for determining that the anticipated price/cost will be fair and reasonable: It is anticipated that adequate price competition will exist on this procurement; therefore the Contracting Officer will determine the anticipated price/cost to be fair and reasonable by utilizing FAR 15.404-1(b)(2)(i), comparison of proposed prices received in response to the solicitation. Additionally, the Contracting Officer will utilize FAR 15.404-1(b)(2)(ii), comparison of proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items.

Length of contract, quantity, and other contract particulars bearing on the price/cost: As

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previously mentioned, this is a five-year, Firm Fixed-Price, Indefinite Delivery Indefinite Quantity type contract. The five-year period is inclusive of one two-year base period and three separately priced one-year option periods. As such, the price analysis for future years will be based on the Global Insights Producer Price Index (PPI) forecasts. The Global Insights PPI forecast provides timely, accurate price and cost analysis, and historical records for thousands of commodity prices and wages around the globe allowing procurement professionals to understand supplier cost structure and better negotiate supplier quotes.

The Contracting Officer determines that the anticipated cost to the Government will be fair and reasonable.

Market research/efforts to obtain competition (10 U.S.C. 2304(f)(3)(D)&(E))

DLA Land and Maritime conducted various forms of market research including the publishing of a formal sources sought notice and market survey to the Government Point of Entry, www.fbo.gov. In addition to publishing a sources sought notice, the Contract Specialist researched the procurement history and approved sources of supply for the item on the proposed solicitation, and emailed each of the approved sources of supply. The results of the market research are listed below.

The sources sought notice was posted to the Government Point of Entry on April 16, 2018, with a response date of April 23, 2018. No responses were received.

The procurement history indicates that two contractors, EnerSys Energy Products and Exide Technologies, who are manufacturers of the battery, have provided this item to the Government in the past. The third approved manufacturing source, FIAMM Energy Technology, S.p.A., was qualified after the current contracts were established and has not yet had the opportunity to receive a contract for this NSN. Based on a review of the market research performed for the previous long-term contract for this item, the contracting specialist did not contact the manufacturers of the higher level assemblies, as neither firm expressed interest in participating in the previous long-term contract acquisition.

EnerSys Energy Products, Inc. indicated in their market survey that they are a large business manufacturer. They are interested in pursuing a long-term contract

They indicated this NSN is commercial in nature, Exide Technologies indicated in their market survey that they are a large business manufacturer. They are interested in pursuing a long-term contract

They indicated this NSN is commercial, SPE7LX18R0121

FIAMM Energy Technology, S.p.A. indicated in their market survey that they are a large business manufacturer and their parent company is Hitachi. They are interested in pursuing a long-term contract

They consider the item to be commercial.

In accordance with FAR 5.204 and 5.203(a), a pre-solicitation notice will be published to the Government Point of Entry at least 15 days before issuance of the solicitation. The Contracting Officer will allow at least a 30-day response time for receipt of proposals from the date of solicitation publication.

Actions Being Taken to Overcome Barriers to Competition (10 U.S.C. 2304(f)(3)(F))

The Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions for these items to be competitive. The Government will also include a clause in this solicitation that provides that the Government will consider alternate offers, and that alternate offerors should submit a source approval request (SAR) package that will be referred to the engineering activity. If the current procurement cannot be delayed, due to mission requirements and to allow sufficient time for the engineering activity to determine whether to approve the alternate offer, the SAR package will be considered for future awards.

SPE7LX18R0121

CONTRACTING OFFICER CERTIFICATION

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief.

Digitally signed by

BUNNELL.THOMAS.L.12301442

Date: 2018.06.14 15:56:55 -04'00'

THOMAS L. BUNNELL

Contracting Officer

Approval / Certification

06/14/18 Date

I have reviewed and approve this justification. The estimated total value of the J&A is

Date: 2018.06.14 16:20:06 -04'00'

Acquisition Counsel Date DLA Land and Maritime Office of Counsel

COUTURE.MAR Digitally signed by

COUTURE.MARY.E.1230253613

Y.E.1230253613 Date: 2018.06.15 15:50:29 -04'00'

MARY E. COUTURE Date Competition Advocate

Digitally signed by

BROWN.MARK.ALBERT.104117

Date: 2018.06.15 17:01:38 -04'00' 06/15/18

MARK A. BROWN, SES Date Acquisition Executive

BUNNELL.THOM

AS.L.1230144229

BROWN.MARK.AL

BERT.1041175032

SPE7LX18R0121

Approval / Certification Continuation

ROXANNE J. BANKS Date DLA Competition Advocate

Associate General Counsel Date Office of DLA General Counsel

MATTHEW R. BEEBE, SES Date Senior Procurement Executive

APPROVAL REQUIREMENTS

(X) Over $93,000,000 Senior Procurement Executive (AQ)

Attachments:

1. Sources Sought Notice

2. Previous Justification and Approval For Other Than Full and OpenCompetition

SPE7LX16R0013

BANKS.ROXANNE.

JARAMILLO.11560

04908

Digitally signed by

BANKS.ROXANNE.JARAMILLO.

1156004908 Date: 2018.07.12 08:38:30 -04'00'

Date: 2018.06.19 12:10:59 -04'00'

BEEBE.MATTHEW.

RICHARD.1012725

Digitally signed by

BEEBE.MATTHEW.RICHARD.10

12725473 Date: 2018.07.12 10:24:51 -04'00'